Commercial real estate bridge lender Calmwater Capital has provided Rhino Investment Group with $20.86 million in short-term, first mortgage debt for its acquisition of Cathedral City Marketplace, a 195,000-square-foot-grocery anchored retail center in the greater Palms Springs area.
Anchored by Kroger’s Food 4 Less, tenancy includes a mix of national and local community serving retail and restaurant users occupying inline and pad space. Other notable tenants include Planet Fitness, dd’s Discounts, DJ’s Sports Bar, and Subway. The 21-acre center also provides ample parking for 1,093 automobiles.
Built in 1990 Cathedral City Marketplace is located at 34091- 34351 Date Palm Drive in Cathedral City on the signalized corner at Dinah Shore Drive. With 1,200 feet of frontage along Date Palm Drive, a major regional roadway connecting Cathedral City to neighboring communities of Desert Hot Springs, Palm Desert, Palm Springs, and Rancho Mirage, Cathedral City Marketplace enjoys visibility from the 51,000 vehicles that pass by the center each day.
Cathedral City Marketplace also benefits from a trade area of approximately 95,000 households that live within a five-mile radius of the center. Additionally, Disney’s first residential community Contino, now under development one mile from the center, not only will bring an additional 1,900 residential units to the area, but spur economic growth for region.
The origination team included Managing Principal Larry Grantham; Director, and Head of Western US Originations Zach Novatt; and Vice President, Underwriting DaJuan Bennett.
“Rhino Investments is a repeat borrower with a successful track record of adding value through redevelopment, operational efficiency, and improving the tenant mix, and we are confident in their ability to execute on their business plan once again,” said Grantham.
A portion of Calmwater’s loan proceeds will be used to help fund physical improvements and costs associated with stabilizing the property. Cathedral City Marketplace was 78 percent leased at closing.
“We were able to accommodate an evolving purchase structure while the purchase agreement and due-diligence were being finalized,” said Novatt. “Once renovations are complete, Cathedral City Marketplace will provide the community an upgraded retail experience with a refreshed mix of modern restaurant and retail offerings to compete at the high end of the market.”
The Los Angeles-based JLL Capital Markets team of Jeff Sause, Chad Morgan, Daniel Skerrett and Jalynn Borders arranged the financing.
“Our team is excited to see Rhino execute their value-add business plan and transform the asset to realize its full potential,” said Sause. “Calmwater Capital demonstrated outstanding performance by remaining flexible during the acquisition process. This successful transaction reinforces our commitment to further develop our ongoing partnership with both the Calmwater and Rhino teams.”
About Calmwater Capital
Calmwater Capital is a commercial real estate debt lender specializing in senior secured bridge and transitional loans. With offices in both Los Angeles and New York city metros, Calmwater provides certainty of execution and individualized attention to our borrowers nationwide. Founded in 2010, Calmwater has grown to attract institutional investors both domestically and internationally. Calmwater Capital has originated more than $4 billion in loans across 249 transactions since 2010. For more information on Calmwater Capital, visit www.calmwatercapital.com
About Rhino Investments Group
Rhino Investments Group, a leading Henderson, Nevada-based Commercial Real Estate Firm focused on value-add investments in retail and commercial real estate across the United States. With a proven track record of successful acquisitions and asset management, Rhino Investments Group is dedicated to transforming properties and delivering exceptional returns for investors. For more information, visit http://rhinoig.com.
About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 110,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com
